Should You Finance a Used Car or Pay Cash?

David Majedi

May 24, 2022

Buying a used vehicle is an economical choice that can help you save money while driving a car you love. As used cars are often more affordable than used vehicles, some buyers consider whether it is better to pay cash for a used vehicle or take advantage of financing options. There is no one-size-fits-all answer to this question, however, there are some things you may want to consider when you start looking for your next vehicle.

At Autorama, we believe in helping our customers drive cars they love at financing options that work for them. We understand that every customer has unique financial, and vehicle needs, and we are here to make the car buying process better with our extensive selection of used cars for sale. In this article, we help you make sense of your used car buying options and help you understand which is best for you.

Is Financing a Car a Bad Idea?

Financing a car can be a great way to help you get into the vehicle you need with a manageable repayment option. Financing a car isn’t bad and is very popular amongst car buyers. According to Finder  85% of all new cars and 55% of used cars in the US are financed, making financing the norm for most car buyers. With long-term options and low-interest rates, financing can be a beneficial choice that allows buyers to have affordable payments for cars that suits their needs.  

Benefits of Financing a Car

Financing a car makes affording a safe and reliable vehicle more accessible to many car buyers. Beyond offering convenient payment options that can fit well into your budget, financing may also allow some customers to work towards building strong credit. This can be especially important for buyers with no or low credit who are looking to use their vehicle as a way to boost their credit score over time.

Our previous article, Credit and Car Buying 101 offers some insight into how financing a car can help some consumers build their credit over time. Responsible use of credit cards and other loans may also help to build credit. However, if you make on-time payments towards your car loans, your car too can help you show a strong history of responsible borrowing.

How to Finance a Used Car

Financing a used car is a great choice for many buyers. When looking to learn more about how to finance a used car Toronto residents trust the experts at Autorama. We are always working to help you find a car you love at a financing rate that works for you. Our previous article, What Do I Need to Finance a Car outlines the basics of auto financing and what you will need to get started.

Have questions or want to apply for auto financing? Contact a member of our sales team and let us show you how you can drive the car you need with a financing rate that works for you. 

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David Majedi

David brings a decade of experience to his role as Finance Manager at Autorama. Having served a diverse clientele with unique financing needs over the years, he has gained comprehensive knowledge of the market and forged created relationships with all lenders, including banks and private lenders.

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